Reporting a Change in Accounting Principle CostKo Corp. reported net income of $1,000,000 and $1,100,000 in Year 1 and Year 2, respectively. In Year 3 (the current year), the company chang: using the new method (FIFO), net income would have been $1,100,000 and $1,302,000 in Year 1 and Year 2 , respectively. current year), the company changed its method of accounting for inventory from weighted average to FIFO (first-in, first-out). As a result of ectively